2010.09.27_TC_Minutes_Special TOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
BUDGET PUBLIC HEARING
Monday, September 27, 2010 5:01 PM
Mayor Jim Newill, CPA, called the Budget Public Hearing to order in Commission Chambers at
5:01 PM.
CALL TO ORDER:
Roll Call: Members present: Mayor Jim Newill, CPA; Vice Mayor Miriam S. Zwick;
Commissioner Doris M. Trinity; Commissioner John J. Sorrelli; and Commissioner John J.
Pagliaro. Also present: Town Attorney Tom Sliney; Town Manager Dale S. Sugerman; Town
Clerk Beverly M. Brown; Chief of Police Craig Hartmann; Deputy Finance Director Cale Curtis;
Assistant to the Manager Zoie Burgess; and members of the public.
u Pledge of Allegiance: The Pledge of Allegiance was given, followed by a minute of
silence in honor of members of the military, both living and deceased.
Civility Pledge: Town Clerk Brown recited the Civility Pledge for the Commission and
public.
1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA:
• Agenda accepted as presented.
2. PUBLIC COMMENTS AND REOUESTS:
Mayor Newill — At our last Budget Hearing, Commissioner Sorrelli asked if I was satisfied with
the budget and I replied — Yes, I was. This started me thinking. I have revisited the budget with
a sharp pencil and a drive to return more to our residents in an even lower tax rate decrease.
With this said, I would like the Commission to consider the following: 1) Elimination of the
2.2% COLA and capping the merit raises at 5% based on employee evaluations, saving
$56, 265.00. 2) Eliminate the refurbishing of the Commission Chambers for at least another
year — saving $100,000.00. 3) Eliminate the expansion, redesign and refurbishing of the Police
Department for at least another year — saving $200,000.00. 4) Eliminate the LPR — (License
Plate Recognition - cameras indefinitely — saving $58,000.00. These deductions would reduce
Town Commission Budget Hearing Minutes
September 27, 2010 Page 2 of 9
the budget a total of $414, 265. 00. It only takes a reduction of $87,207.00 to decrease the tax
rate by .10 mils instead of .05 mils. If the Commission would so desire, the previously stated
reductions could reduce the millage even further. If not, the reduction would be used to increase
the contingency amount and reduce our draw on the Reserves. Secondly, in reviewing the
current unrest of the Town Manager, I would strongly recommend the Commission place a hold
on any hiring's or promotions of Department Heads. If there is to be a change in the Town
Manager position by the Town Manager or the Commission, it would be unfair to a new Town
Manager to have these positions filled prior to him or her coming on board.
Dennis Sheridan — Monterey House
I am here this afternoon to speak on behalf of the residents in Highland Beach, especially some
in Monterey House. Many are experiencing very difficult times in this poor economic time. I
would ask that the Commission reduce the budget anyway that they can. In saying this, I would
have to agree with Mayor Newill's proposal to reduce projects that can be postponed or delayed
and to limit Town employees pay increases so that the millage rate can be further reduced. There
are two things that I request of the Commission. 1) I request that the Town purchase equipment
that would guarantee that the residents would be able to review and hear these meetings. Three
or four of these very important meetings went by the wayside and the public had no idea what
was going on. 2) I also think it is necessary to consider reinstating the Detective position in the
Police Department. As it stands now, whenever an investigation is necessary, some other agency
has to be called in to do the investigation. I thank you for any cuts that you can make on behalf
of our residents.
Mayor Newill — I would like to add, that I attempted to watch our last Budget Public Hearing the
other night and it was garbled. I only understood half of what was being said. �.,.
Arlin Voress — 4403 Intracaostal Drive
We are going through some tough economic times. I know that everyone has worked hard on
putting this budget together. I think that there are some places that can be cut. All you have to do
is look around this room and see the number of people in attendance. Why do we need to spend
$100,000.00 on renovations? I believe it is right to give Town employees up to a 5% merit
raise. But, you must have a process to let employees know how they are doing. I understand
that the Town Manager is recommending eliminating performance reviews, I whole hardly
disagree. We need to continue with the performance reviews, if only to tell our employees if they
are either doing a good job or a bad job. We really need to have a Detective back in the Police
Department rather than using the Palm Beach County Sheriff's Department to do the follow -up
on our cases. We are a wealthy enough Town to support our own Detective. I think the money
for a Detective ought to be included in the budget.
Joe Cannazaro — Bel Air Drive
I would like to make a couple of comments about the elimination of the performance reviews. I
quote the Town Manager: "This is just an experiment to see if I can ease some of the pain and
suffering that many of our employees endure if they receive anything other than an excellent
rating from their supervisors. I am looking for a better way and I think this one year experiment
may give us an opportunity to explore some other alternatives." You got to be kidding me. I
have been in business for thirty years; I can't believe every employee receives an excellent
r
Town Commission Budget Hearing Minutes
September 27, 2010 Page 3 of 9
rating. What motivation do these employees have? I happen to use "Management by
Objective." I meet with every employee and we set objectives together. Then we review them
on a monthly basis. By having a review system, it motivates employees and helps reduce
employee turnover. I also think from a legal point of view, if you have an employee that is not
performing properly, how can you let this person go? You need some type of performance
system. I do not recommend implementing this recommendation to eliminate evaluations for one
year.
3. PUBLIC HEARING — RESOLUTION NO. 10 -012 R
A) INTRODUCTION - RESOLUTION NO. 10-012 R
A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF HIGHLAND BEACH,
FLORIDA, ADOPTING A FINAL MILLAGE RATE OF 3.3042 MILS FOR THE TOWN'S
GENERAL OPERATING FUNDS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2010
AND ENDING SEPTEMBER 30,2011; PROVIDING THAT THE FINAL MILLAGE RATE OF
3.3042 MILS IS 8.37 PERCENT LESS THAN THE COMPUTED ROLLED -BACK RATE OF
3.6062 MILS; PROVIDING FOR SEVERABILITY, CONFLICTS AND AN EFFECTIVE
DATE.
Town Clerk Brown read Resolution No. 10 -012 R into the record.
B) PUBLIC HEARING — RESOLUTION NO. 10 -012 R
Mayor Newill opened the Public Hearing.
Not receiving any comments, Mayor Newill closed the Public Hearing on Resolution No. 10 -012R.
C) COMMISSION DISCUSSION
Commissioner Trinley — If the recommendations that you made are put in place, is there any way
we can again reduce this millage rate? Town Manager eg rman — The Mayor pointed out in his
outline, the value of every .05 mills the Commission might like to reduce the millage rate, would
mean we would collect $87,208.00 less in revenue taxes. We would have to offset that in the
budget, and there are a variety of ways to off set it. We could off set it by reducing the Reserve for
Contingency amount or reducing the expenditures. To answer your question, yes the millage rate
could be reduced.
Mayor Newill — I brought forth my concerns for the residents. With the little savings that they still
have, they are getting .3 or .4 income on that. The County is increasing the taxes 10 %. The
insurance is going up. There is a freeze on any kind of increase to social security next year. I
again, encourage the Commission to give some thought to further decrease the millage rate. I
realize the total amount of taxes collected for Highland Beach is a small number compared to the
total tax bill, but any help given to the residents will be greatly appreciated.
MOTION: Comm. Sorrelli moved to accept the following changes recommended by the Mayor to
the 2010 -2011 Budget: 1) Elimination of the 2.2% COLA and capping the merit raises at 5%
based on employee evaluations; 2) Elimination of the refurbishing of the Commission Chambers;
Town Commission Budget Hearing Minutes
September 27, 2010 Page 4 of 9
3) Elimination of the expansion, redesign and refurbishing of the Police Department; 4)
Elimination of the LPR — (License Plate Recognition — cameras) .
Vice Mayor Zwick — If we accept these changes, will it affect what we are here for today, to set the
millage rate? Manager Su eg rman — You are correct, but the second item on the agenda allows the
Commission to reduce the appropriation of dollars within the budget. If you adopt this motion,
staff will go back and include those changes into the final printed budget. That would be on the
second item. The second item impacts the first item if you want to reduce the millage rate. I can't
pre- suppose how the motion might go to cut out $424,365.00 out of the budget. You could lower
the millage rate by .045 mils. In round figures that would be another .25 mils approximately. Vice
Mayor Zwick — If we adopt these Resolutions, and Mr. Sorrelli's motion, those items would
automatically come out of the budget? Manager Su eg rman — What I am saying is, if Mr. Sorrelli's
motion passes to remove another $424,265.00 from the budget; you could conceivably pass all the
savings onto the tax rate. Or, you could put some of the savings on to the tax rate and allow the
Reserve for Contingency to increase. You do not have to give it all back to reduce the tax rate.
Vice Mayor Zwick — Is this something that we have to decide right now? Manager Su eg rni —
You would have to decide today.
Mayor Newill — I am getting the feeling from the Commissioners that unless we reduce the budget,
we cannot lower the millage rate. Even though we have to set the milllage rate first, we can vote
to make cuts to the budget.
Comm. Trinley — I have a question regarding Mr. Sorrelli's motion. The elimination of the 2.2%
COLA and the capping at 5% merit raises based on employee evaluations. I thought that was
voted down 3 -2. No evaluations. Mayor Newill — He can still make that motion, or he can take out u
that part. Comm. Trinley — I would like to see it in, how do we do that? Manager Su eg rman —At
the last Budget Workshop you asked that the evaluations be separate from the budget process.
That topic is on tomorrow's Regular Commission Agenda, so there will be another chance at
voting whether or not you support the performance evaluation process. Either way, Comm.
Sorrelli's motion deals with dollars and the budget contains enough money for the granting up to
5% merit increases. That does not need to be part of this motion.
Mayor Newill — When I was writing this, I felt so strongly that I included it with my comments.
Town Attorney Sliney - You are talking about dollars, and the merit raises are capped at 5 %, but it
could be less than that. It will depend on the review. Mayor Newill — It would be capped at 5 %,
but it could be less. In my mind, and apparently in Johns' mind, you need some type of evaluation
process.
Comm. Pa liaro — I feel strongly about this subject and the direction that we are pursuing. Feel that
both sides have something to contribute. We have to take a look at the process and re- evaluate the
evaluation form. I think the employees, the Commission and the Town Manager need to
participate in this process. I think we need more participation of the employees in the evaluation
system. I do not see this as a difficult process. I am not happy with the current evaluation process.
Mayor Newill — I do not disagree with you, but there is a section on the form where the employee
can respond.
Town Commission Budget Hearing Minutes
September 27 2010 Page 5 of 9
Manager Su eg rman — There are sections on the performance evaluation where the Supervisor gets
to make overall accumulative comments and the employee has an opportunity to respond.
Vice Mayor Zwick — I am almost completely in favor of your suggestions that were incorporated
into the motion. I have one thing that really bothers me and meant to speak about it the first time
that I could. At the last Budget Public Hearing, I introduced the idea of eliminating the COLA and
doing away with the merit raises for this year. That was my first objective in trying to lower the
millage rate, lowering the burden on our tax payers, but maintaining the services in our Town. But
I wanted to say this time, and do not want it to get lost in the shuffle, is I am very much against the
elimination of the COLA. I think the COLA raise has been established by the majority of
businesses all over the country. We have to recognize that the burden is on us. It is harder on the
employees to see the price of everything going up. I think it is a minimum enough raise and is a
very strong promise in any walk of life. I wonder if the maker of the motion would approve of
eliminating from his motion the section dealing with the 2.2% COLA? I cannot see that as an
avenue to reduce the budget for the Town residents while keeping the faith with our employees.
Mayor Newill — We have a motion and we need a second before we have any further discussion.
Comm. Trinley — I second Commissioner Sorrelli's motion to cut those four items from the budget.
Mayor Newill — Is there any further discussion?
ROLL CALL:
Commissioner Sorrelli - Yes
Commissioner Trinley - Yes, eliminate the COLA
Commissioner Pagliaro - Yes
Vice Mayor Zwick - No
Mayor Newill - Yes
Motion passed with a 4 -1 vote.
Mayor Newill — I call for a motion to adopt Resolution No. 10 -012 R. I believe we have to
establish the millage rate first.
Manager Su eg rman — You are still in Commission discussion on the rate. Part of the discussion on
the rate, you just gave an indicator that on the next agenda item you will be reducing the overall
budget by $414,625.00. Now the Commission needs to decide what you are going to do with the
reduction. Give some of it back in the form of a lower millage rate? Give it all back in the form of
a lower millage rate? That is the point you are at right now.
Mayor Newill — Do you want further discussion on what the Town Manager just stated? What I
understand is that we are now determining the millage rate. Do we want to reduce the rate of
3.3043 which reflects a .05 millage reduction, or take it to a .10, a .15 or a .20? Whatever rate that
you decide.
i
Town Commission Budget Hearing Minutes c
September 27, 2010 Page 6 of 9
MOTION: Comm. Trinley moved to reduce the tax rate by .10 mills instead of the .05 mills;
seconded by Comm. Sorrelli. (Motion not voted on, incorporated into Resolution)
Mayor Newill — Further discussion? You realize you can take it even lower if you want to. You
have already voted in savings of $414,625.00. That could reduce the millage to 3.2542.
Manager Su eg rman — Can we take a 5 minute recess to go over the figures, so that the title of the
Resolution can be amended to show the actual rate and the percentage of reduction.
Mayor Newill called for a 5 minute recess and promptly called the meeting back to order.
D) ADOPTION OF RESOLUTION NO. 10 -012 R
Cale Curtis Deputy Finance Director — With a .10 millage rate reduction, the final millage rate will be
3.2543 mills, which is a 9.76 percent less than the computed roll -back rate of 3.6062 mills.
Town Clerk Brown read Resolution No. 10 -012 R, as revised, title only, into the record.
RESOLUTION NO. 10 -012 R (Revised 9/27/10)
A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF HIGHLAND BEACH,
FLORIDA, ADOPTING A FINAL MILLAGE RATE OF 3.2542 MILS FOR THE TOWN'S
GENERAL OPERATING FUNDS FOR THE FISCAL YEAR BEGINNING OCTOBER 1,
2010 AND ENDING SEPTEMBER 30, 2011; PROVIDING THAT THE FINAL MILLAGE
RATE OF 3.2542 MILS IS 9.76 PERCENT LESS THAN THE COMPUTED ROLLED -BACK
RATE OF 3.6062 MILS; PROVIDING FOR SEVERABILITY, CONFLICTS AND AN
EFFECTIVE DATE.
Mayor Newill — Opened the Public Hearing on Resolution No. 10 -012 R as revised. Receiving no
public comments, the Public Hearing was closed.
MOTION: Comm. Sorrelli moved to adopt Resolution No. 10 -012 R, as amended; seconded by
Comm. Pa liaro.
ROLL CALL:
Commissioner Sorrelli - Yes
Commissioner Pagliaro - Yes
Commissioner Trinley - Yes
Vice--mayor Zwick - No
Mayor Newill - Yes
Motion passed with a 4 -1 vote.
Town Commission Budget Hearing Minutes
September 27, 2010 Page 7 of 9
4. PUBLIC HEARING — RESOLUTION NO. 10 -013 R
A) RESOLUTION NO. 10 -013 R
A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF HIGHLAND BEACH,
FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING
OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011; DETERMINING AND FIXING
THE AMOUNTS NECESSARY TO CARRY ON THE GOVERNMENT OF THE TOWN FOR
THE ENSUING YEAR; PROVIDING FOR SEVERABILITY, CONFLICTS AND AN
EFFECTIVE DATE.
Town Clerk Brown read resolution No. 10 -013 R, title only, into the Record.
B) PUBLIC HEARING — RESOLUTION NO. 10 -013 R
Mayor Newill opened the Public Hearing.
Not receiving any comments, Mayor Newill closed the Public Hearing on Resolution No. 10 -013R.
C) COMMISSION DISCUSSION
No further discussion.
D) ADOPTION OF RESOLUTION NO. 10 -013 R
MOTION: Comm. Trinley moved to adopt Resolution No. 10 -013 R; seconded by Comm. Sorrelli
ROLL CALL:
Commissioner Trinley - Yes
Commissioner Sorrelli - Yes
Commissioner Pagliaro - Yes
Vice Mayor Zwick - Yes
Mayor Newill - Yes
Motion passed with a 5 -0 vote.
5. REPORTS — TOWN COMMISSION:
A) Commissioner Pagliaro — No Report.
B) Commissioner Sorrelli — No Report.
C) Commissioner Trinley — No Report.
D) Vice Mayor Zwick — No Report.
E) Mayor Newill — No Report.
Town Commission Budget Hearing Minutes
September 27, 2010 Page 8 of 9
6. REPORTS — TOWN ATTORNEY:
No Report.
7. REPORTS — TOWN MANAGER:
No Report.
8. PUBLIC COMMENTS AND REOUESTS:
Joe Cannizaro — Bel Lido
With respect to the COLA, retired people are not going to get one next year, nor did they get
one last year. On what index does the Town use to come up with the COLA percentage? Why
is it different from the rest of the country? Mayor Newill — This Commission voted not to give
the employees a COLA this year. Town Manager can you address the source of the COLA?
Manager Su eg rman — The basis of the annual COLA is the US Depart. Of Labor, Bureau of
Labor Statistics annual all consumer price index increase for the prior 12 months for the month
of April that is published in May of every year. Mayor Newill — I think the man brought up a
legitimate question that you cannot answer. If that system came up with a 2.2 %, why are not the
people on social security on the same system? They did not get an increase last year, and
will not be getting one this year. Manager Su eg_ rman — Not being familiar with social security,
I cannot answer. Town Attorney Sling X — I have a recollection and it might not be correct. But I
think the cost of living has to be at least a 3 on the cost of living scale before social security is
increased. Mr. Cannizaro — Still do not know why the index is different. Given the fact that we
have a high percentage of retired people in this town, maybe the Commission should look at the
COLA guidelines used by social security. Manager Su eg rman - We use the labor statistics for
working people in the South Florida Region. We have used this index for many years which
relates to those who work in South Florida. It is the April index every year, published in May.
Mr. Cannizaro — Given the high percentage and I imagine that we have a high percentage of
people not working. I just think that maybe the Commission could consider looking at the
federal guidelines used by the Social Security Administration given the fact that we have so
many retired people in Town. I do not know what the percentage is, but it is high. So when
you have retired people not getting COLA increases, and you have town employees getting it, it
doesn't seem equitable to me.
Cale Curtis Deputy Finance Director —
With the adoption of the second Resolution, adopting the budget, I want to be sure that the
Resolution calls for the correct amount of revenue based on the change in the millage rate.
Lowering the millage rate, will change the revenue the Town will receive, and will require that
Section 1 of the second Resolution also be revised. Mayor Newill — Correct. What you are
saying, when we reduced the millage rate from .05 mills to .10, it still leaves $300,000.00 left of
the reduction that has to go into a line item. C. Curtis — What I am saying is you reduced
expenditures by $414,265.00 and reduced the revenue by $87,200.00. This last Resolution
appropriates the revenue and not the expenditures and calls for revenue totaling $14,228,556.00.
Town Commission Budget Hearing Minutes
September 27, 2010 Page 9 of 9
That number is going to have to be changed by $87,200.00. Manager Su eg rman — The total
revenue number has to be reduced by $87,208.00 or $87,207.00. Not sure which number is
correct. Actually it makes sense to reduce it by $87,208.00 as it is more conservative. Mr.
Curtis is right. We need to go back and revisit Resolution No. 10 -013R and amend the number
in Section The amended number is $14,141,358.00. Mr. Town attorney, since the Resolution has
already been adopted, how do we get it back on the Agenda for re- consideration? Town
Attorney — Just what you are saying. You amend Section 1 of Resolution No. 10 -013 R.
Someone needs to make a motion to amend.
MOTION: Comm. Sorrelli moved to amend Section 1 of Resolution No. 10 -013R as follows:
" There is hereby appropriated the sum of $14,141,358 in new revenue, for the payment of
operating expenditures for the Town Government pursuant to the term of the above budget. "
Motion seconded by Comm. Pa lg iaro
ROLL CALL:
Commissioner Sorrelli - Yes
Commissioner Pagliaro - Yes
Commissioner Trinley - Yes
Vice Mayor Zwick - Yes
Mayor Newill - Yes
Motion passed with a 5 -0 vote.
9. ADJOURNMENT
There being no further business to come before the Commission, Mayor Newill adjourned the
Budget Public Hearing at 8:00 PM upon a MOTION by Commissioner Pa lg iaro seconded by
Vice Mayor Zwick.
APPROVED:
Jim Newi _ , PA, _ ayor
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Mir . Zwicllk,, Vice a or
Doris M. Trinley, Commission
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